I’ve always felt like Bert Hochfield took a conservative approach, so I thought this was a very in-depth and encouraging analysis for SNOW.
Here are his final thoughts:
“But regardless of how things appear now, the opportunity to acquire a position in one of the leading growth companies in the IT industry at even a half-reasonable valuation is too good to pass up. I have started buying a position in the shares, not because I think they are going to see some specific bounce in the immediate future, but because I am looking at a 12 months’ time horizon and beyond.”
Snowflake: The Only Thing Melting Is The Share Price - It Is Getting Ready For Its Next Stage Of Hypergrowth
Bert not only dissected the Q4 results into an insightful take and made sense of the relative valuation in an up to the minute fashion; but also placed a dollar figure on the Q4 revenue impact of the customer pass through of the compression and compute efficiencies identified at $2m, (something I hadn’t seen confirmed before) which would have added another 1% of growth over the year ago quarter revenues of $190m and would have bumped the 2022 Q4 revenues to $385.77 or 102.5% YoY growth in case that’s of any reassurance to those disappointed in the results. He also gave a 6 month time frame for payback in the form of elasticity of demand.